South Korean Won Hits 4-week High

The South Korean won traded around 1,337 per dollar, reaching a four-week high and approaching its strongest level since October 2024, as strong external balances boosted the currency. South Korea posted a current-account surplus of $46.1 billion in August, the second-highest on record, with the goods account alone generating a $46.81 billion surplus. September export data continued to provide a favorable external backdrop, with shipments surging 83.5% year-on-year to a record $120.9 billion and the trade surplus reaching a record $49.85 billion. Thin holiday liquidity also amplified corporate dollar selling, helping the won hold up in the mid-to-high 1,330s. Meanwhile, the US 10-year Treasury yield remained around 5.3% after recently reaching its highest level since 2002, while the dollar index stayed near its strongest level since April 2025. The latest Fed minutes also showed that most officials favored another rate increase by year-end, limiting the won’s gains.

The South Korean Won touched 1336.00 against the USD, the highest since September 2026. Over the past 4 weeks, US Dollar South Korean Won lost 0.26%, and in the last 12 months, it decreased 6.07%.

The South Korean won traded around 1,338 per dollar, hovering near its strongest level since October 2024 amid steady dollar selling by semiconductor exporters. Thin holiday liquidity amplified corporate dollar supplies, pushing the rate toward the mid-to-high 1,330s. Robust September exports and a large trade surplus reinforced the won’s external backdrop, with exports surging 83.5% year-on-year to a record $120.9 billion, led by a 262.8% jump in semiconductor shipments, while the trade surplus expanded to a record $49.85 billion. Additionally, the dollar softened amid reduced expectations for near-term Fed tightening following softer US jobs and inflation data. Meanwhile, US Treasury yields remained elevated, with the 10-year yield around 5.28% after recently reaching its highest level since 2002, limiting the won’s gains.